Neil Patel, co-founder of NP Digital, explains how acquiring the SEO software tool Ubersuggest drives lead generation and customer acquisition for his marketing agency.
0:00 / 0:04exact quote · 4.9s
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“40% of all our agency customers first come from Ubersuggest.”
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More from Neil Patel
Insight
Patel: Agency service churn is typically much lower than software churn
“Churn in our space is typically much lower than software churn.”
Neil PatelMay 17, 2023▶ 12:09A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
AssertionContradicted
Patel: Canva reached $1M MRR roughly 30 days after launching
“They're one of the fastest companies to ever hit a million dollars in MR. I think they did it in 30 days or something like that of launching.”
Neil PatelMay 17, 2023▶ 4:33A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
Disclosure
Patel: NP Digital Acquired AnswerThePublic for $8.6M at $1M–$1.2M EBITDA
“Answer the public. We recently bought this company for 8.6 million, funny enough, from FE International that had a booth. And they were only doing one, 1.2 million in EBITDA, so we overpaid for it.”
Neil PatelMay 17, 2023▶ 5:52A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
Insight
Marketing in a niche takes the same effort as a large TAM
“Marketing is almost the same effort marketing in a niche as it is in a big TAM, so swing for the fences and go after a big vertical.”
Neil PatelMay 17, 2023▶ 10:03A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
Insight
Patel: Free tools win enterprise users by bypassing budget approvals
“If you're an employee at a big company, are you able to swipe a credit card? No, you gotta get budget approval, even for nine, nine dollars a month. So you end up picking up a lot of users, even if your product's not as good, because it's free.”
Neil PatelMay 17, 2023▶ 15:44A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
PredictionNot checkable as stated
Patel: SaaS is a race to the bottom with price cuts
“SAS is a race to the bottom. Everyone keeps charging less and less for the same features and is copying other people. And that's what's gonna keep happening.”
Neil PatelMay 17, 2023▶ 16:53A New Way to Think About SaaS: How to Build a 9-Figure Company by Giving Software Away For Free
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